Don't Drive Contractors To Suicide: Karnataka HC To Govt Over Pending Bill Payments

Additionally, Karnataka High Court criticized BBMP for utilizing seniority as the basis for clearing outstanding dues for contractors.

The contempt petition filed by M/s Nikshep Infra Projects against BBMP for non-compliance with a prior court order was heard on Wednesday

Source : https://karnatakajudiciary.kar.nic.in/

The Karnataka High Court, in response to a contempt of court petition regarding unpaid bills, expressed concern over the government's own records revealing the suicides of two contractors and emphasized that such incidents cannot continue. Additionally, the court criticized BBMP for utilizing seniority as the basis for clearing outstanding dues for contractors.

According to PTI, the HC said, “Your records say, it is on record, that two of the contractors have committed suicide. It is on record; your record. Look into that. Don’t drive the contractors to the corner.”

The contempt petition filed by M/s Nikshep Infra Projects against the Bruhat Bengaluru Mahanagara Palike (BBMP) for non-compliance with a prior court order was heard by the division bench of Chief Justice Prasanna B Varale and Justice Krishna S Dixit. The petition pertains to the BBMP's failure to release payment for pending bills related to works executed by the company, as directed by the court in the past. In a previous hearing, the BBMP had asserted that it was disbursing the outstanding amounts to various contractors based on the "seniority" of the submitted bills.

The HC, citing its earlier interim order of October 30, 2023, said, “We are unable to understand this concept of BBMP for payment of bills," referring to the inordinate delay in payments for completed works.

The court further said, "In any welfare state, this cannot be a concept when there is no dispute with regard to the fact that a public body floated tender for certain work, successful bidder completes the work by following all the conditions of the work order and public body also admits that the work is duly completed but, still the successful bidder or the contractor is required to wait for the amount due and payable to him for an unreasonable time or has to run from pillar to post for his payment and ultimately.” The HC on Wednesday noted that there was no dispute about the contract.